Private and Public Entity Risk Management Essay

Private and Public Entity Risk Management - Essay Example Like many of it is counter-parts the Minnesota state government has largely ignored the vital role played by risk management in achieving both operational and strategic objectives. The trend was simultaneously aped by also other state affiliated entities such as quasi-government owned corporations and also city councils entities have embraced risk management. Less than 44% of aggregate public Only in recent times there has been an almost immediate and appreciation of risk management knowhow. Formerly traces of public entities embracing aspects of risk management were only evident in the national health insurance policies (personal risk) for their citizens. Recent times have seen public entities aware of other forms of risk currently and previously adopted by their private sector allies such as: †¢ Strategic risk. Enabling government entities to manage current and future threat while leveraging on opportunities embedded in their strategic goals and objectives †¢ Operational risk. Associated with the day to day running of government institutions such as efficiency and integration in core departments such as procurement, auditing and compliance. †¢ Reputational risk. Like in the private sector goodwill is highly valued, any damage to the state reputation will lead to significant decrease to net valuation of the entity. The causes have been more vital through the emergence of social media where information is transferred by the click of a button. Less than 44% of aggregate public of risk management knowhow.